The National Assn. of REALTORS® is touting membership of some 1.2 million nationwide, but not all of the rank and file are cheering. There is a great deal of discussion among real estate professionals about "thinning the herd." Anthony Marguleas of A.M. Realty in Los Angeles, who is currently working on a book about the secrets and myths of the real estate industry, has conducted research into the time it takes to become a qualified real estate agent, versus other professions. The results, he says, make shocking reading.
Of 20 professions he compared, from pilot to plumber, from teacher to chiropractor, a real estate agent could qualify to sell homes as a professional to the unsuspecting public with a mere 48 hours of training (in California; other states vary). The next lowest was an esthetician or beautician, who required almost 12 times more training: 600 hours, followed by a police officer, required to complete 1120 hours of training to qualify for their job. A hair stylist has to complete 1500 hours of training, a chiropractor 3840 hours, a CPA undertakes 5980 hours. Says Marguleas:
"It confirms the beliefs that the public has about the generally low level of professionalism that is still rampant in the real estate industry. Most people consider a 'professional' to be an 'expert'- someone who has undergone specific training for their career and has a certain level of knowledge and experience too.
"The fact is that many people are becoming real estate agents with a minimum of training -- because the industry makes that possible -- in order to make a fast buck. Many real estate agents don't have much grasp of the business at all, let alone the intricacies: keeping on top of changes in legislation, for example. The typical real estate agent probably started out in another occupation and either wasn't making enough money, lost their job and couldn't find another in the same area of business, or just decided to 'give it a go.'".
"In California, the number of REALTORS® has increased 44% in the last five years. Now there are almost 400,000 people with real estate licenses in California, 66,000 of them in Los Angeles. "In the early part of 2004, the number of real estate agents in Los Angeles outnumbered properties for sale at a ratio of 7:1. These figures make for a cut-throat industry."
Given that real estate agents are assisting people with the most important -- and usually the most expensive -- purchase of their lives, Marguleas believes that the training to become a real estate agent should, at the very least, be equal to that of a stock broker (1920 hours).
Ditto...plus a degree.
Posted by: Karen Mason | March 27, 2005 at 04:04 PM
It is frightening the level of training that is required to become an agent. However, we must also realize that only those that take the profession seriously and are willing to invest in their education and the tools necessary to market their business succeed.
-Randy
www.4mysales.com
Posted by: Randall Wilson | February 05, 2006 at 10:35 PM
Wouldn't it be nice if it were that easy? Please consider that there ARE a lot of agents out there that work very hard and EARN their money. It takes a few years before you are actually able to just "rake in the cash." And when an agent is "raking in the cash" they earn it-working long hard hours. Some of us actually want to help people through what we do.
Posted by: L Towns | November 04, 2006 at 05:31 PM
I also wanted to add...
In 2003 I started to shop around for a home.
At the time I shopped around with different firms, and all i heard was there were multiple bidders from realtor. This was big in the media at the time.
Realtors told me if you want your offer to be accepted you had to overbid by 1-2% times the number of bidders in the market.
After a month I found a TH i was interested in.
The price was $330K. The realtor told me he was informed there were 7 others ... pretty much tops 10% asking .. around $360K
My offer came in at $365K. Hindsight, Stupid right!
Well my offer was accepted... before i signed all the final contract, I lost my job due to recession. I was lucky to back out of the deal.
Nearly 3 months later I find the TH sold for only $335K. I also find the price went from $225K to $335K for similar units in 1 year.
So where are those other 7 bidders which drove the prices higher? I dont think there were any. Its was all realtors lies.
Another year later I come across some coworkers selling their home. So I ask How many bids did you get? Many were not told. In one case the seller knew of only one bid they got. It turned out it was 5% over asking. But only one bidder. Did the buyer know they were the only bidder. If so, would you not low ball your offer.
Even today when I go to open houses, realtors keep talking about multiple bidders. So who are they? What are the bids? If you ask the seller/buyer realtor, they will not disclose.
Just like the my prior post we have fake bids fabricated by realtors to push prices higher.
The higher the price the more commission whey were paid.
We have a major problem here!
Posted by: Red | December 24, 2006 at 09:35 PM
So where are those other 7 bidders which drove the prices higher? I dont think there were any. Its was all realtors lies.
Posted by: realestateglendaleca | May 08, 2007 at 09:03 PM
i like this post i love it lol..
Posted by: realestateglendaleca | May 08, 2007 at 09:06 PM
Realtors Do Lie About Other Bidders.
Fake Bids are Commonplace and Pushe the Seller and the Buyer to Do what the Realtor wants.
If they say there are multiple bids, walk away, they are trying to create a False Frenzy.
Realtors don't EARN their pay, they just don't.
It took me one month to "rake in the cash".
I am an Ex-Realtor, Still Broker Owner and I know that the Real Estate Industry hurts the consumer Every day. This system is built on false data, deception and there is No Consumer Protection in Real Estate. Reators are not trained in what consumers need them to know. Most definately a "low Level" of professionalism. Realtors are Experts in Holding on to their career and that is all. www.SavvyBroker.com
Posted by: Crystal L. Cox - Broker / Owner | July 11, 2008 at 08:49 PM
So where are those other 7 bidders which drove the prices higher? I dont think there were any. Its was all realtors lies.
Chickens coming home to roost... Realtors need to be held accountable for their actions. Do away with blind bids and you solved the problem.
Posted by: John in SoCal | July 29, 2008 at 09:32 AM
Chickens coming home to roost... Realtors need to be held accountable for their actions. Do away with blind bids and you solved the problem.
Posted by: web tasarımı | August 12, 2009 at 08:01 AM
http://therealdeal.com/newyork/articles/agents-ethical-code-starts-to-erode
Agents' ethical code starts to erode
Some agents turn to stealing buyers, making fake offers to nail down deals
June 30, 2009 02:01PM
As real estate brokers watch their incomes plummet in a vastly weakened market, experts say there's an accompanying increase in unethical behavior, from inflating asking prices to stealing buyers to making fake offers.
Posted by: John in SoCal | October 03, 2009 at 11:24 AM
I agree with L towns, there are a lot of agents out there that work very hard and earn their money.
-Sam
Posted by: va mountain real estate | January 13, 2010 at 09:28 AM
I'm currently looking for a home to buy and your blog really interesting. Keep up the good work.
Posted by: Exclusive Buyers Agency | March 24, 2010 at 10:16 AM